Emmanuel OchayiIn a major development for Nigeria’s economy, the Dangote Refinery, valued at $20 billion, is set to be listed on the Nigerian Stock Exchange by December 2024.
Aliko Dangote, Chairman of the Dangote Group, expressed his enthusiasm for this move, highlighting the historic opportunity it presents for Nigerians, Africans, and global investors.
“The listing, most likely, I won’t be surprised if we list by the end of this year. We will do that. It’s new, and I think we would like to allow Nigerians, Africans, and other investors to join in making this historic move,” Dangote stated during an interview with The Africa Report.
Economic analyst Rotimi Fakayejo predicts that the refinery’s listing could add about N8 trillion to the Nigerian Stock Exchange’s market capitalization. Fakayejo explained, “The listing of any company is to distribute wealth. When individuals and corporate organizations buy into a company that is perceived to do well, it increases the economic wealth and well-being of the country.”
He added, “With the Dangote refinery coming, it will add a minimum of about N8 trillion to N10 trillion to the market capitalization. That implies we are going to see the market capitalization running to about N40 trillion to N45 trillion after the listing.”
The listing is also expected to attract significant foreign portfolio investment. “It is going to engender foreign portfolio investment, which will bring more foreign exchange and boost the economy,” Fakayejo noted.
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David Adonri, Vice President of Highcap Securities Limited, emphasized the listing’s potential to create substantial wealth for Nigerians. “It is a major development for the Nigerian capital market. It will be a momentous event because of the share size of the refinery and the depth it will bring to the Nigerian equity stock market.”
Importing Crude Oil
In a related development, Dangote revealed that the refinery has begun importing crude oil from the United States due to fluctuating oil production figures in Nigeria. “We have tendered to buy some WTI oil from the US because the size of our refinery is very big, and we have to make sure we secure the raw materials for our production. If we have 100 percent Nigerian crude, fine, but we can’t wait because sometimes the production is up and down,” he explained.
Production Capacity
The refinery is expected to reach a daily capacity of 500,000 barrels by the end of July and 650,000 barrels by the end of the year. Dangote clarified that the imported US oil represents only 10 percent of the refinery’s full capacity. “The US oil is not being imported to take over Nigerian crude. It is roughly about two cargoes in a month, which is about 10 percent of our demand at full capacity.”
Future Prospects
Dangote also assured that the refinery will significantly reduce Nigeria’s dependence on imported petrol. “We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico,” he said during the recent Africa CEO Summit in Rwanda.
The refinery, already producing diesel and aviation fuel, is expected to start selling petrol in June. This development is anticipated to end the monthly importation of an average of 1 billion liters of premium motor spirit into Nigeria.
The listing of the Dangote Oil Refinery on the Nigerian Stock Exchange is poised to be a transformative event for Nigeria’s economy, attracting foreign investment and creating wealth for Nigerians. The refinery’s capacity to produce and supply fuel to the entire continent marks a significant milestone in Africa’s industrial landscape.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
